VA's $8.8M Spruce IDIQ for Agile Services Awarded to AVB Digital II, LLC

Contract Overview

Contract Amount: $8,882,371 ($8.9M)

Contractor: AVB Digital II, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-16

End Date: 2027-04-15

Contract Duration: 819 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE OBJECTIVE OF THE SPRUCE IDIQ IS TO PROVIDE VA WITH A STREAMLINED ENTERPRISE-WIDE METHOD TO OBTAIN SUCH AGILE PRODUCT DESIGN AND DELIVERY SERVICES THROUGH THE ESTABLISHMENT OF MULTIPLE AWARDS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.9 million to AVB DIGITAL II, LLC for work described as: THE OBJECTIVE OF THE SPRUCE IDIQ IS TO PROVIDE VA WITH A STREAMLINED ENTERPRISE-WIDE METHOD TO OBTAIN SUCH AGILE PRODUCT DESIGN AND DELIVERY SERVICES THROUGH THE ESTABLISHMENT OF MULTIPLE AWARDS. Key points: 1. The Spruce IDIQ aims to streamline enterprise-wide agile product design and delivery for the VA. 2. AVB Digital II, LLC secured the contract, indicating a specific vendor's capability in this area. 3. The contract type is Time and Materials, which can pose budget risks if not managed closely. 4. Awarded under full and open competition, suggesting a competitive bidding process was utilized.

Value Assessment

Rating: good

The contract value of $8.8M for agile services appears reasonable given the scope of enterprise-wide product design and delivery. Benchmarking against similar IDIQs for specialized IT services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was intended. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary VA services.

Public Impact

Enhances VA's ability to procure agile product development services efficiently. Supports modernization efforts within the Department of Veterans Affairs. Potential for improved digital services for veterans through agile methodologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not carefully monitored.
The 'after exclusion of sources' clause needs clarification to ensure true open competition.

Positive Signals

Streamlined procurement method for agile services.
Supports VA's enterprise-wide IT modernization goals.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on agile product design and delivery. Spending benchmarks for similar IDIQs in this space vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify small business participation. Further analysis is needed to determine the impact on small business opportunities.

Oversight & Accountability

The IDIQ structure allows for multiple awards, suggesting a framework for ongoing oversight of vendor performance and adherence to contract terms. The VA's internal oversight mechanisms will be crucial.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract.
Clarity needed on 'exclusion of sources' to ensure full competition.
Lack of specified small business participation.
Dependence on effective oversight for multiple delivery orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.9 million to AVB DIGITAL II, LLC. THE OBJECTIVE OF THE SPRUCE IDIQ IS TO PROVIDE VA WITH A STREAMLINED ENTERPRISE-WIDE METHOD TO OBTAIN SUCH AGILE PRODUCT DESIGN AND DELIVERY SERVICES THROUGH THE ESTABLISHMENT OF MULTIPLE AWARDS.

Who is the contractor on this award?

The obligated recipient is AVB DIGITAL II, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2025-01-16. End: 2027-04-15.

What specific agile methodologies and deliverables are expected under this IDIQ, and how will their effectiveness be measured?

The IDIQ is designed to provide agile product design and delivery services. Specific methodologies and deliverables would be defined in subsequent delivery orders. Effectiveness measurement will likely involve key performance indicators (KPIs) related to project timelines, budget adherence, quality of output, and stakeholder satisfaction, as typically outlined in individual task orders and managed by the VA.

What are the potential risks associated with a Time and Materials contract for agile services, and what mitigation strategies are in place?

Time and Materials (T&M) contracts carry a risk of cost escalation if not tightly managed, as payment is based on actual effort expended. Mitigation strategies include establishing clear labor categories with pre-negotiated rates, setting not-to-exceed (NTE) limits on individual delivery orders, robust oversight of hours billed, and defining specific deliverables and milestones within each order to ensure progress aligns with spending.

How does this IDIQ contribute to the VA's overall IT modernization strategy and improve service delivery to veterans?

This IDIQ provides a flexible and streamlined mechanism for the VA to acquire agile development services, which are crucial for modernizing IT systems. By enabling faster iteration and adaptation, it allows the VA to develop and deploy improved digital services for veterans more effectively, responding quicker to evolving needs and technological advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 276 GARDINERS BAY DR, PONTE VEDRA, FL, 32081

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,939,964

Exercised Options: $8,882,371

Current Obligation: $8,882,371

Actual Outlays: $3,120,163

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $8,826,864

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10B25D0008

IDV Type: IDC

Timeline